A lawsuit was filed on behalf of investors in Paypal Holdings Inc (NASDAQ:PYPL) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 01/02/2018 -- The Shareholders Foundation announces that an investor, who purchased shares of Paypal Holdings Inc (NASDAQ:PYPL), filed a lawsuit over alleged violations of Federal Securities Laws by Paypal Holdings Inc in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Paypal Holdings Inc (NASDAQ:PYPL) should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
SOn February 14, 2017, Paypal Holdings Inc announced an agreement to purchase TIO Networks Corp. for $233 million. TIO Networks Corp is a bill-pay management company that processed roughly $7 billion in bill payments on behalf of 14 million customers in 2016. On July 18, 2017, Paypal Holdings Inc announced the completion of the acquisition of TIO Networks Corp.
According to the complaint the plaintiff alleges on behalf of purchasers of Paypal Holdings Inc (NASDAQ:PYPL) common shares between February 14, 2017 and December 1, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 14, 2017 and December 1, 2017, the Defendants made false and/or misleading statements and/or failed to disclose that TIO Networks Corp's data security program was inadequate to safeguard the personally identifiable information of its users, that the foregoing vulnerabilities threatened continued operation of TIO Networks Corp.'s platform, that PayPal's revenues derived from its TIO Networks Corp. services were thus unsustainable, that consequently, PayPal had overstated the benefits of the Acquisition of TIO Networks Corp., and that as a result, Paypal Holdings Inc's public statements were materially false and misleading at all relevant times
On December 1, 2017, after the market closed, Paypal Holdings Inc (NASDAQ:PYPL) disclosed that personally identifiable information for approximately 1.6 million customers of TIO Networks, a payment processor PayPal acquired in July 2017, had potentially been compromised as a result of previously announced security vulnerabilities.
Those who purchased shares of Paypal Holdings Inc (NASDAQ:PYPL) have certain options and should contact the Shareholders Foundation.
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